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Vesper Capital Psyquation Link – click here to find out more about Michael’s company Psyquation, Mike will know you’ve come through us so his team will take extra good care of you.
Today Vesper Capital co-founder Jon de Wet is speaking with a chap by the name of Michael Berman. Mike is currently the CEO of an online robo trading coach and emerging money management incubator platform called Psyquation, and before that he’s had a string of accomplishments behind him such as managing a hedge fund for more than a decade, being a director for a public company when he was still in his 20s, and has worked for a number of leading South African investment banks. Mike has a bachelor of commerce, a masters of science and a PhD in economics – behavioural finance.
Now in the interests of full disclosure but also to tell you a bit about Michael’s current company, we started working with Psyquation recently when we realised how important it was ensure we were keeping an eye on the total historical and real-time risk exposure of Vesper Capital. In brief, Psyquation takes traders’ goals and provides live feedback on how their strategy is faring against those stated goals. Everything from style drift to exposure, to, in our world, Portfolio Risk.
Mike’s business is now moving into fund allocation, and aides fund managers in allocating their capital based on the behavioural and quantitative performance of traders in the Psyquation pool.
This is not the place to go into how Psyquation works, but we will say it’s the most impressive thing we have found by far and it’s really opened our eyes to managing risk effectively and to ensure we are putting together a fund that is going to weather choppy markets and ultimately be successful in the long term.
In this episode, Jon and Mike touch on things like
- Different trading styles and which ones in particular that Psyquation deals with
- The differences between retail, or home traders, versus professional traders
- Technology used in trading and where it’s going
- The biometric feedback that Mike is currently working on
- Conventional wisdom versus what the evidence shows you have to do to be profitable
- And they also speak more about the Psyqation business and what it does specifically to help traders
LINKS & FURTHER READING:
Michael made reference to macro analyst Jim Rickards whose book Currency Wars – The Making of the Next Global Crisis he recommends to those wanting to understand the macro picture.